Ownership

Mine Type

Resource

Operations

Drilling underway to obtain additional geotechnical data, samples for metallurgical test work and to produce a NI43-101 compliant resource estimate

Anticipated initial Restigouche production in Q3-2018

Restigouche Project

Formerly producing zinc-lead-silver mine located approximately 27-km west-southwest of Trevali’s Caribou mine in the Bathurst Mining Camp of New Brunswick. Restigouche was intermittently mined using an open pit mining method by two different past operators, Breakwater Resources and Blue Note Mining, with the material being trucked to and processed at the Caribou mill, in total approximately 756,000 tonnes were mined historically.

Restigouche deposit historic resources and past production

Category

Tonnes

Zn%

Pb%

Cu%

Ag g/t

Historic Indicated Remaining(1)

861,882

7.07

5.25

0.33

78.16

Past Production 1997

198,000

6.6

5.34

-

127

Past Production 2008

557,978

6.4

4.7

-

100

(1)Based on a Mine Plan Reopening Report dated March 2009 and prepared by CSI Mining and Engineering, for Blue Note Metals Inc. Historic resource estimate is based on 236 diamond drill holes and past open pit production, using a 7% lead+zinc cut-off grade. Gold was not estimated. These resources should be viewed as historic and neither the Canadian Provincial Securities Commissions nor the US Securities and Exchange Commission recognize the reporting of historic resources, they are considered conceptual in nature. It cannot be assumed that all or any part of historic geological resources will ever be upgraded to a higher category.

Geology and Mineralization

High-grade sulphide mineralization outcrops at surface and dips gently to the north-northwest. The Restigouche sulphide body has a strike length of approximately 120 metres and continues down dip for 460 metres. Thickness varies between 1-to-plus-30 metres, with an average thickness of approximately 20 metres.

Section of the Restigouche project looking ENE

Development Plans

A mining method trade-off study and conceptual mine design is in progress by Mining Plus. In parallel to mine design, additional diamond drilling is planned for the H2-2017 to obtain additional geotechnical data, samples for metallurgical test work and to produce a NI43-101 compliant resource estimate. Following receipt of Approval to Operate, development of the mine portal will commence along with refurbishment and installation of site infrastructure: generators, maintenance shop, offices and site security, partly utilizing mobile infrastructure from Trevali’s Halfmile mine site. It is anticipated that initial production from Restigouche to supplement feed to the Caribou mill will be in Q3-2018.

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